Magnifina expands direct-stock strategies to nonprofits

Magnifina is opening its institutional equity strategies to nonprofit endowments, foundations and investment committees through separately managed accounts. The move gives mission-driven institutions direct stock ownership, proxy voting control and custom ethical screening instead of relying on pooled funds.

Why it matters: - Nonprofit endowments and foundations can now access institutional equity strategies that let them own stocks directly. - Direct ownership gives institutions more control over ethical exclusions and proxy voting. - The structure also aims to reduce concentration risk and improve diversification.

What happened: - Magnifina, a registered investment adviser based in New York City and Westchester, is opening its institutional equity strategies to endowments, foundations and nonprofit investment committees. - The strategies are offered through separately managed accounts, or SMAs. - Institutional clients can engage Magnifina from focused consulting to a full outsourced chief investment officer, or OCIO, role. - The firm says the offering is designed for mission-driven institutions and the allocators and consultants that advise them.

The details: - In a separately managed account, an institution owns individual stocks directly. - That structure lets the institution apply its own exclusions and keep control over proxy votes. - Magnifina's strategies use a systematic, rules-based research process. - Holdings are weighted evenly to help limit concentration risk. - Diversification comes from strategy design, not from holding a broad pool alone. - Portfolios are rebalanced monthly. - New accounts are added at the next rebalance. - Each engagement is tailored to fit an institution's existing governance and investment policy statement. - Magnifina says pooled funds can conflict with a nonprofit's mission because fund managers control underlying holdings and proxy voting.

Between the lines: - The pitch is aimed at institutions that want mission alignment without giving up professional portfolio management. - The model also reflects a broader shift toward more customized, values-based portfolio construction in institutional investing. - Asher Rogovy, Magnifina's chief investment officer, said direct ownership lets a nonprofit decide what it will not hold and how its shares are voted.

What's next: - Interested institutions can learn more on Magnifina's endowments and foundations page. - Magnifina says the offering will continue through its existing monthly rebalance schedule for new and current accounts. - The firm will continue serving individuals, families, trusts, endowments and foundations through its broader advisory business.

The bottom line: - Magnifina is betting that nonprofit investors want the control of direct stock ownership without losing access to institutional-grade equity management.